Romania spent only 8% of EU-backed Recovery and Resilience Facility funds

Romania has spent the equivalent of 8 out of 100 euros from the EU-backed National Recovery and Resilience Plan, or PNRR, a set of preferential loans and grants given to EU members to boost their post-pandemic economic recovery, according to Ziarul Financiar.

The PNRR has two main components: one, in which the government must meet targets and milestones to attract funds, and the second involves the actual spending of the money.

So far, about EUR 9 billion have been received into Romania’s accounts, but only EUR 2.4 billion have been spent. Only 70 out of 518 targets have been met, indicating a completion rate of less than 14%.

The funds are conditional on several major reforms and are disbursed gradually as these are done. The third payment request, worth EUR 2.7 billion, including pre-financing, has been under review by the European Commission for more than half a year.

In two and a half years since Romania received the first funds from the PNRR, 8% has been spent, according to data aggregated by Ziarul Financiar from the budget execution published by the Ministry of Finance. In the remaining two and a half years, when the period for using the funds ends, the remaining 92%, or over EUR 26 billion, must still be spent.

Prime minister Marcel Ciolacu said he cannot reduce the budget deficit because he would then have to forgo co-financing for European projects. The figures, at least regarding the PNRR, show that the funds have largely not been spent, so co-financing from the state budget has not been necessary.

(Photo source: Marian Vejcik | Dreamstime.com)